Long term care insurance helps pay for things like nursing homes, assisted living and in-home care for older adults.
The costs of that care can be quite expensive. And, unless you don’t have much in the way of income and assets, Medicare won’t cover many of those costs.
This is why many Americans get long term care insurance. Below we’ll look at what long term care insurance costs. We’ll also look at what factors affect that cost.
What Does Long Term Care Insurance Cost?
Pricing for long term care insurance is often based off of someone who gets it when they are 55 years old.
At that age, the average cost per year for the insurance is around $2100 for women and $1700 for men. Married couples can get a plan that covers both of them. The joint plans average around $3000 a year.
For women, plans can range from around $1500 to $6500. For men, it’s around $1000 to $3700.
Factors That Affect the Cost
There are a number of factors that affect the cost of long term care insurance. We’ll look at what these are here.
Gender, Age and Marital Status
Based on the average rates above, you can see how things like age, gender and marital status affect the rates.
For age, basically you can expect to pay more for a policy the older you are when you first purchase the policy.
With gender, because women tend to live longer than men, they pay higher premiums than men do.
And with marital status, if both you and your spouse get a policy together, you’ll usually save on the premiums.
The Insurance Company You Choose
Which insurance company you get your policy from will also determine how much you pay. Different companies and policies offer different benefits and levels of coverage. So it pays to shop around and find the policy that makes the most sense for your needs and budget.
Should You Get Long Term Care Insurance?
According to a government study, a person who is 65 has a 70% chance of needing some type of long term care at some point. And the costs for long term care can easily be well over $100,000 over the last 5 years or so of a person’s life.
These numbers are why many Americans are choosing to get a policy.